Faster Payments – Coming Soon

When it comes to choosing a payroll provider for your contracting services one of the main considerations is how quickly will you get paid? We all work to get paid and with most of us living a life that involves standing orders and direct debits the sooner we can get funds in the better.

The great news is that the UK Banking Industry is introducing a new system that will significantly speed the whole process up, where as you have to pay a fee for a CHAPS payment to get a same day credit there will soon be no need. Faster Payments Service will allow almost instant (at worst up to 2 hours after a payment instruction has been issued) inter payment between banks that have signed up. Eventually it is hoped that all UK banks will jump on board.

Faster Payments goes live on the 27th of May 2008, following that there will be a period where some banks are still joining the system. During this period if one of the banks involved hasn’t joined then a standard 3 day payment cycle will still be in use. The moral of all this is this, in order to get your pay on the same day for free after the 27th of May, make sure that both your bank and your payroll providers bank are signed up to the Faster Payments Service.